Hariharan Rajeswari Vs ITO (ITAT Chennai)
Chennai ITAT Allows Fresh Exemption Claims for BSNL Retrenchment Benefits Without Revised Return, Holding Tax Authorities Must Assist Taxpayers
The Chennai ITAT held that a BSNL employee could not be denied exemption under sections 10(10B) and 10(10AA) merely because the claim was not made through a revised return. The Tribunal observed that the assessee had originally claimed only partial exemptions due to ignorance of the correct legal position, whereas the entitlement under the BSNL retrenchment scheme had already been settled by the Madras High Court. Relying upon CBDT Circular No. 14(XL-35) of 1955, the Tribunal reiterated that the Income-tax Department should not take advantage of a taxpayer’s ignorance and is duty-bound to guide taxpayers in securing legitimate reliefs. It further held that the First Appellate Authority possesses co-terminus powers with the Assessing Officer and ought to have entertained and allowed the fresh claim instead of rejecting it on the technical ground of non-filing of a revised return. Accordingly, the Tribunal directed the Assessing Officer to grant exemption under section 10(10B) for both assessment years and under section 10(10AA) for AY 2020-21, ignoring the absence of a revised return and subject to the prescribed statutory limits.
